NBE, Banque Misr proceeds from 25% saving certificates reach EGP 119 bn till now

Proceeds from the 25 percent saving certificates launched on Wednesday by the National Bank of Egypt (NBE) and Banque Misr (BM) reached nearly EGP 119 billion till now, NBE Vice Chairman Yahia Abou El-Fotouh said.

Abou El-Fotouh stated that the proceeds from the new certificates reached EGP 80 billion at NBE according to media report. He also noted that 50 percent of proceeds were totally new money and not money coming from other certificates, adding that some people exchanged their US dollars to acquire those new certificates.

Those certificates will only be available for a limited period given that they were issued for the specific purpose of fighting inflation and to withdraw liquidity, Abou El-Fotouh added.

However, Banque Misr‘s the proceeds from the new certificates reached EGP39 billion according to its Chairman Mohamed El Etreby.

Egypt’s biggest state-owned banks, NBE and BM, issued new one-year maturity saving certificates with a 25 percent yield after one year, the highest yield on record, in an aim to contain rising inflation by encouraging savings.

The certificates are also available at a 22.5 percent yield for monthly disbursement.

According to Abou El-Fotouh, more than 70 percent of the linking of certificates has been implemented through alternative channels (Al-Ahly Net, Al-Ahly Mobile and the Call Centre).

He added that the employees in the two banks were present in the branches despite the Christmas holidays in order to reduce congestion on working days.

Both banks opened their doors on Friday and Sunday, officially holidays this week, to only serve clients interested in buying the new saving certificates and those who want to exchange foreign currencies.

Friday is an official weekend holiday in Egypt; whereas Sunday is a paid holiday for both the public and private sector on the occasion of Coptic Orthodox Christmas.